from washington the mclaughlin group. the american original. the sharpest minds, best sources, hardest talks. issue one, egypt erupts. >> america wants to be a partner in the egyptian people's pursuit of a better future and we are guided by our national interest in this long standing relationship. but our partnership must also advance the principles that we believe in. and that so many egyptians have sacrificed for these last several years no matter what party or faction they belong to. >> reporter: the egyptian

police and security forces launched a coordinated operation to clear the streets of cairo, of tens of thousands of imbrotherhood protes were demanding the return of the ousted president mohammed. it left 46 egyptian police and 525 protesters dead. some 3,700 injured. the crackdown was the second time that the president and his supporters have ignored military ultimatums. the first time that mr. mosey was ousted by the militant after refusing to reconcile the pro-democracy protesters. and this time the supporters openly declared that they would rather die than abandon their protest. this bloody outcome has lead president obama to cancel annual joint u.s. egyptian militarexercises scheduled for

next month. mr. obama, however, did not propose spending the $1.5 billion to the egyptian government for rupturing the u.s. egyptian partnership. and they are at an all-time high in egypt. pro democracy forces are still angry at president obama and the former secretary of state hillary clinton for their initial backing for the former president. mubarak. this is followed by mr. obama's swift and embrace, whom the pro democracy forces blame, for trying to hijack their democratic resolution and to turn it into an islamic republic. and the sentiment was worse for the u.s. ambassador that is now being withdrawn, denouncing the tactics of the forces. and the supporters for their part, they blame the u.s. for secretly blasting them the

ongoing support for the government. and the danger now is that the u.s., they have limited leverage at the time of the rising tensions. tensions that could lead to the prolong strikes between the muslim brotherhood and the egyptian government. >> and question on friday, the official death toll was at 638 people killed. and as egypt is headed the way to algeria, it means that they will be committed through a long and bloody campaign to obliterate the income of the extremist. >> and here is what happens, the egyptian militants, seeing what they were doing, sort of crowding them out to depose that president to put them in prison to lock up hundreds of leaders of the muslim brotherhood. connecting what is a massacre as thousands were injured haze were casted in egypt haze crossed that there. there is no going back. and the army, they are not

going to allow the muslim brotherhood or the elections or the non-elections back into power or they will end up in the icebox just like they did. and so now what we've got is the situation i think like algeria in 199 ask when they canceled the elections where the islamists were winning and they would have a bloody civil war that follows. i think what's going to happen in egypt though, it is basically some part of the muslim brotherhood that they will need to stay with the non- violence, but that they will be engaging against the military. >> yes, about ten years. do you think that it will last ten years. >> i think that you will help them with the extreme brotherhood, killing the people left and right. >> and the army, they clearly overplayed that there. and they were very popular at first as they actually came in with the backing of many egyptians. millions of egyptians, signing petitions, wanting him out. i was using the phrase that people's crew, i think that we need to put a whole lot more

confidence in the general for them than what was apparently deserved. and that now, he seems to think that he could erratic the muslim brotherhood through a group force. that's not going to work. even at the height of mubarak's 30-year reign, the brotherhood, they had some seats in parliament. he knew, mubarak knew, he treated them like they needed a sting valve and he regulated it quite carefully. but to try to just crush them completely, it is not going to work. it seems to me that unless they reinstate him in some sort of power sharing arrangement, that this is going to continue. they are not just protesting in tahrir square, they're protesting all over the country. >> the united states gives them $1.5 billion a year. in military and non-military aide. do you think that should be suspended? >> i don't think that it is close. the military is using the aid to slaughter people in the streets. that seems like a pretty clear-

cut case. if we continue to give the military aid, that makes us accomplices in these atrocities. >> what do you think, mark? >> we must continue with it. egypt is the corner stone of our support in the muslim and arab world. without egypt, we're in deep, deep trouble. frankly the muslim brotherhood was not exactly pro-american to put it mildly. they would try to impose that totalism by the people, that's when the military stepped in. the muslim brotherhood was still trying to create all kinds of tension and violence within this society. that's what would cause the army to respond. and they could, they did overplay their hand. nevertheless. >> and historically with the relationship in recent years. >> well, mubarak, he was very constructive in terms of the peace office for the middle east. that's one of the corner stones of that particular element in that part of the world. but i would tell you something, it's not just us, but the countries like saudi arabia, all those countries do not want

the muslim brotherhood. and that they would be a disaster. >> let's go ahead. >> our friends in the region, notably israel, they do not want us to cut off aid as they are afraid that we will have absolutely no leverage there. the leverage we have is so minimal. when it comes to money, they could get millions of billions more in the other gulf country. but i read in your times that if we abandon egypt, which we are not going to do, that vladimir putin will be there two hours later. >> exactly. >> and this is a new kind of thing. >> and that business could go on as usual with this taking place. here is what you need to go on with the army. now, look, no doubt that is a massacre and that we should not deny it. however, the army, they will keep them bottled up in gaza. they word with them to stop the jihaddists. and they work with the americans, at same time our

influences are minimal. when it comes to them holding power and keeping it, it will be a problematic matter that you need to maintain a relationship with the military. my guess is that you need to keep the weapons going if you're going to maintain that. because as they said, you know, there will be more in a minute with the russian weapons if they drop out. >> if we need to give aid too the political reasons, we could give the other types of aids to help with the infrastructure, to give them the windmills, whatever. the reason that we're giving them this type of aid is that they could buy the weapons and the fighter jets from the u.s. and the weapons makers. now, egypt, they don't need to buy more fighter jets every year. our economy, they will need to sell them to more fighter jets. that's really what's going on. >> who will be resolved by the brilliance of capitollism? >> the state-run capitalism. >> that's the question if it comes to the civil law between the muslim brotherhood and the egyptian army, which side will president back? >> united states will stay on

the side of the military because that is where our interest lies. >> and you're pleased with the way that the united states has been handling it up to date? >> yes, i think that they handled it. but he is not responsible for it. >> i don't think that we should have thrown out mubarak as quickly as we did. >> forget mubarak, that's a done deal. >> well, you know, in this one, i don't think that you could stop the military. they said that we're not going to let what happened to us what happened in iran where all those generals ended up dead and we're taking back our country. >> why did we do what we did against mubarak? >> i think that we got caught up in that stuff and he said out you go in three weeks where in three weeks we should have worked with them and prepared the transition. >> the very first speech that he gave outside the united states, it was in cairo. and it was about what? >> 2009. >> and in the summertime? >> june. >> did he say anything in that speech that might

haveinstigated in some way? >> basically what he said, he said that we are friends with islamic and muslim people and we want to see democracy and we want to see more participation. >> hold on, we've got an extra question. >> there is no question that what, four to five years later that this has not turned out to be the way that he wanted. he wanted to soften the americans relations with the muslim countries. and now there is a fire storm. he is caught between his rhetoric, which is about the arab spring and the democratic politics. and democracy. and reality. and the reality is that this has been a brutal military crackdown. that he doesn't have any great options, but he is going to stay on the sidelines and let the egyptian people sort this out themselves. >> it sounds like that came from the source. >> right. >> well, that is just the true picture. >> yes. >> we absolutely cannot afford to lose egypt. if they take over in egypt, the

whole middle east will become jeopardized. they have not. >> they did for a while. >> that would be a disaster for the united states and their interest in that part of the world. so where do we go to prevent that from happening? >> well, we're not going to come out against the military. as quietly as we can. >> and for that 1.5 million. >> i don't think that he will. it will be return wise. and a disaster for us. do you want to speak on this? >> yes. there is blood on our hands. and they are sending them weapons that they are using to kill the innocent people. that's the fact of the situation on the ground at the moment. you can use this leverage to urge them to stop killing their own people. >> al jeer januaryallgerian -- allgerian lasted for two years. >> this is a dangerous decision made by a judge that i think

does not understand how policing works. we'll continue to do everything that we can to keep this city safe. crime can come back any time. the criminals think that they are going to get away with things. >> new york city mayor michael bloomberg is not happy. a ruling this week put the brakes on the mayor's stop and frisk procedure. in fact in its present form the judge deems to stop and frisk unconstitutional. stop and frisk is a police tool that has soared under mayor bloomberg's soon-to-be 12-year reign. stop and frisk allows the police officers to stop, question, and if the officer has a reasonable suspicion, that the person may be dangerous, then the officer could frisk the person, administering a patdown. and the procedure has listed the protest and the lawsuit

from the people that say they are being aggressively targeted by the police because of the race. and the judge agreed. 4.4 million people have been stopped. some frisked, some not. between january of 2004 and june of 2012, eight years were black or hispanic. and in fact in the year 2011, more young black men were stopped and lived in the city of new york. in their ruling, the judge determined that at least 200,000 of the 4.4 million stops were conducted without the required reasonable suspicion. and of the 4.4 million stopped over eight years, 90%. that's 3 million individuals that were not charged with a crime. and now the judge does not want to end the stop and frisk. he wants the oversight noticeably for the cameras to be worn by some police officers to record the action.

and he also wants an independent court office monitoring the police department and their compliance with the changes to stop and frisk. well, new york mayor bloomberg doesn't want this kind of oversight. stop and frisk will save lives, he says. including the lives of those very minorities who may have protested the policy. >> there is just no question that stop and frisk has saved countless lives. and we know that most of those lives saved based on the statistics have been black and hispanic young men. >> and also the homicide here in new york has dropped dramatically from 1990 to one per day in 2013. mr. bloomberg calculated how many people would now be dead. and the murder rate in new york city had not gone down. >> if the murder rates over the last 11 years had been the same as the previous 11 years, more than 7,300 people that are

alive today would be dead. >> mayor bloomberg vows that the city will appeal. question, will the judge's ruling have a chilling affect on stop and frisk? >> for sure there is no doubt about it. i think it is one of the more unfortunate decisions of the courts. look you have no idea how dangerous new york was, you know, at the turn of the century. there were 2,400 murders and a lot of violent crimes. it is now down to about 250, 260 murders. that kind of drop in crime and violent crime has spread throughout the entire range of criminal activity. it has made the city the safest big city in the world. it's transformed the city, attracting tourists, investments. that's all going to change and he's right. the vast number of people who were affected by this were, in fact, blacks and hispanics, over 90% of them. >> the judge had to do research before he came to this decision. and she based her conclusion on

4.4 million stop and frisk searches. but you know you can only examine 19 different cases. how did she come to the conclusion that 240,000 of the 4.4 million stops lack reasonable cause if she only examined 19 actual incidents? >> it's ridiculous. but here is the point, 83% of the stop and frisk are black and hispanics. but 96 of your robberies, shootings, muggings are done by black and hispanic folks. do they profile them? yes, but they profile young people. is that ageism? they profile not women, but men and they profile blacks and hispanics because they are responsible young blacks and hispanics who are responsible for 96% of the crime. i mean you go with the ducks are. >> the racial profiling happens to be against the law. and so the judge has not thrown out this law overwhelmingly.

she is basically saying that there should be more oversight. i don't see what the big objection is to having a small camera if the cops know that they are being watched. maybe they will behave for responsibly. i think it is pretty obvious that there is police abuse of the searches. the people that feel victimized, they are the overwhelming majority that the people have been stopped who are innocent and they feel victimized by the police now. >> if the camera is on the cop and he is debating whether it is a stop and frisk situation, whether he should take action on the frisk, he's going to be afraid that if he does not turn up a weapon, if he doesn't turn up any contrabands that he would be less likely to take the risk of conducting the search. you follow me? >> right. >> so it would clear the whole

system. good. fewer searches. good. this is america. you're suppose to be able to walk down the streets and if you're not doing anything criminal, then you don't get asked for your papers. this is not the police state. >> and the mayor of new york if there is no stop and frisk. and let's imagine for a second that stop and frisk is responsible solely for the dramatic collapse in crime. that it's been national and across the country. and now let's accept it for the fact that it was stop and frisk. that it is still un-american and still unconstitutional and still racist. but i think that you cannot actually make the claim that you would not have had it. the similar decline. >> is it racist that 90% of the jail inmates are mail and not women and that something like the african americans by 7-1 are inprisoned more than the

white folks. 3-1 more than asians. that's absurd. you base it on who committed the crime. and in the crimes and who has a lawyer. and the first civil rights, the rights to the other elements there. the first civil rights to be protected by domestic violence. >> why is drug use similar among all races, yet they are in jail for the drug offenses. >> they have had the cracked things, going to jail than cocaine. i agree with you. if that is the equity, do away with it. >> yes, you name it. that is a black mark on their record as they need to show their legacy as they made it out to be like that. no, i don't think so. and anybody that knows how they are governing the city for the last 12 years knows that it is not the case. what they were concerned with, is the crime rate. you could walk in central park and you could not walk in manhattan at night. >> yes, we know that it is

working, it is working. we have seen the statistics, you're right. now, will the judge's ruling stand or will it be overturned on appeal? pat buchanan? >> i think that the guys of the spring board will be overturned. so they will win? >> i mean to be able to go down the road, but you may have a new mayor that says stop and frisk. >> yes, bloomberg stop and frisk are not responsible for a thriving new york city. remember mayor giuliani? >> right. he was stopped and frisked too. >> right. but not to this extent. the numbers have ballooned. >> it should stand, the 4th amendment is pretty clear. no searches with reasonable cause. >> i believe that it will be overturned as they came into this case with a widely-known view. i think that it will be overturned. >> yes, they already declared it to be okay by a lot of the higher costs. i think that it will be overturned by the appeal.

>> issue three prison breaks. >> it is clear that we come together today that too many americans will go to too many prisons for far too long and for no truly good law enforcement reasoning. we and the federal government could become both tougher on crime. >> the attorney general eric holder is making what he calls the common sense changes for the u.s. criminal justice system at the federal level. not state level. specifically what they want is to ease the drug crime laws to low down the prison population. the prisons are now at capacity, in fact overcapacity. 40% overcapacity, meaning mass overcrowding. 219,000 inmates are in federal prison. and almost half of those 219,000 federal inmates are in prison for drug-related

offenses. and as to housing all these inmates, he says it highway become unsubstantialable sustainable. >> yes, totaling about $8 billion in 2010 alone coming with human and moral costs that are impossible to calculate. >> not only are there a lot of other americans in prison for a long time. the escalation of the numbers is largely due to the 1980s war on drugs when the sentences was adopted. it means that the judge has nuplex ability when imposing that prison term. and whether or not that there are mitigating factors in the individual case. and let's say that the first time offender who has not committed the violent act, possessing the drug or marijuana or cocaine to sell that drug, they will get the automatic prison sentence of 10

years period. and such sentencing has produced an explosion of the u.s. prison population. and the attorney general, they want to eliminate such sentencing. >> and they will now be charged with the offenses for which they will be better suited to their individual conduct. rather than the excessive prison terms that will be more appropriately for the violent criminals or the drug kingpins. and if the mandatory sentencing for possessing drugs like crack cocaine and they end, will the use of those drugs go up? ryan rimm? >> that assumes that the drug war will be using that there. but the prisons will be filled with drugs, i cannot think of something that would represent a greater failure of the prohibition of drugs than the fact that we cannot keep them out of prisons. >> what are you basing that on? >> there are tons of federal statistics that talk about drug use.

>> they can't keep drugs out of prisons? >> they can't keep them out of prisons. >> let me give you a statistic. we had like 600,000 people in prisons and jails in around 1980. since then it has more than tripled. that's one of the primary reasons that you get these chronic criminals off the streets, and that is why crime has dropped in new york enormously, but dropped in cities all over america. and you start opening up the prisons, they will be right back to the liberal 1980s. >> we're talking about people jailed for long periods of time for minor drug infractions. and where they really have not hurt anybody else, these are not violent crimes, they are only hurting themselves. what holder is opening up the door to is looking at drug abuse as more of a health issue and not a criminal violation. and frankly the states, they are leading the way on this because they cannot afford to keep jailing these people. it is so expensive. >> let me confront you with this. how many crimes does the average drug average commit?

according to the iran study, the average addict commits 11,000 crimes over the lifetime. and the robbery and burglary to support his or her individuals. >> yes, 11,000. >> and let's put them in rehab. 11,000. >> that's a crime every day of the month. >> wow, there you are. >> get them out of bed and put them in rehab. what we're talking about here is people, it's not just cocaine, but marijuana, small amounts of marijuana. even as some states are legalizing marijuana. sot law is -- so a lot of mixed messages are coming out. the president admitted that he used drugs at one point. i'm not going to go into detail. but i think that it is proof enough that anybody that uses drugs shouldn't be in jail with these long sentences. >> george zimmerman will not be prosecuted by the department of justice for an alleged hate crime. >> the new york times of the

expose of the clinton foundation points in one direction. chelsea clinton is the new power house taking over from her parents. >> ryan? chris christie wins the gop nomination. >> that's interesting. more. >> the weakened growth on the economy and jobs in the retail sales means quantitative easing will be continued and not ended. >> i predict that the giant female pandas in washington's national zoo will be diagnosed as pregnant. and she will deliver a baby panda, a male on november the 15, thus deepening our ongoing data with the people's republic of china. we say farewell this week to jack who passed away. jack was a reporter, columnist and author who covered ten u.s. presidential campaigns in rivetting detail from the first primaries to the election night nail biters. jack's command of the american politics is without parallel.

one of the mclaughlin group's five panelists along with pat buchanan, eleanor clift. our heartfelt sympathies to his wife alice, who jack used to remind us as they have deeper insights into politics. this is what he used to say. and so here is a collective bye bye from his colleagues and fans at the mclaughlin group.

this week on well track morgan stanley's asset allocation king david meets up with global discovery fund to look for hidden treasures in world markets. where are they finding buried bargains? that's next on consuelo max well wealthtrack. new york life along with mainstay's family of mutual funds offers investmentan